Bend Over and Smile----Again

There's another bailout coming only this one is worse (or bigger) than all that have gone before. Federal National Mortgage Association --FANNY MAE-- is basically out of money and technically insolvent; Federal Home Loan Mortgage Association---FREDDY MAC--- owes $5.2 billion more than its assets are worth, meaning that they are insolvent (per Bloomberg). A five trillion dollar "misunderestimation" of their financial condition; they own five trillion in mortgages. We can't blame just the awful falsification of earnings or the outrageous salaries and bonuses at FANNY MAE and get our money back; if those two fail the economy is toast. These two finance almost 90% of home loans. Another victory for free market capitalism without adequate regulation. Whew! Things can't possibly get worse.

Can they? Yes they can. Southern Europe is officially in recession right now, which means they ain't buying our stuff no matter how cheap the dollar. How far down into the sinkhole they pull France, Germany, and Britain is scary (they buy nearly 80% of our Big Macs), and the speculation is that they could suck Ireland, and the Scandinavian countries down too.